GK Quiz on National Monetisation Pipeline

Recently the Government of India has announced a National Asset Monetization pipeline. Take a look at the details in the article link shared below and go through the following questions to check if you are thorough with it.  

1. What is the duration of the Asset Monetization Pipeline project of the Government?

1. 5 years
2. 4 years
3. 2 years
4. 10 years

Ans. b

Explanation: The government on August 23, 2021 unveiled a four-year National Monetisation Pipeline (NMP) 

Also Read| What is asset monetisation? Know about Government's plan to raise 6 lakh crore

2. Where does the Government wish to spend the funds generated through this Asset monetization Project?

1. Building airports across the country
2. Building road network across the country
3. Building Housing societies across the country
4. All of the above 

Ans. d

Explanation: The GOI wishes that the funds so generated must be used for infrastructure creation across the country.

3. How much amount is being estimated to be raised through NMP?

1. Five thousand crore
2. Six thousand crore
3. Six lakh crore
4. 7 lakh crore

Ans. c

Explanation: The Government of India announced a four-year National Monetisation Pipeline (NMP) worth an estimated Rs 6 lakh crore.

4. Where was the NMP first announced?

1. On Independence Day 2021
2. On Republic Day 2021
3. Union Budget 2021
4. On August 23, 2021

Ans. c

Explanation: The National Asset Monetization Pipeline was first announced  by Nirmala Sitharaman in the Union Budget speech. 

5. Which of the following statements is true about NMP?

i) It would provide a clear framework for monetisation

ii) It would give potential investors a ready list of assets to generate investment interest

1. Only i
2. Only ii
3. Both i and ii
4. None of the above 

Ans. c

Explanation: Both the above statements are true. The NMP would provide a framework for monetization and also give potential investors a list of assets to generate investment interest. 

6. What are brownfield projects?

1. A project already having construction/ infrastructure  
2. A project to be started from scratch
3. A useless land project
4. None of the above 

Ans. a

Explanation:A brownfield project is one that carries constraints related to the current state of the site. In other words, the site might be contaminated or have existing structures that architects have to tear down or modify in some way before the project can move forward.

7. What is one word for the government transferring revenue rights to private parties for a specified transaction period in return for money?

1. De Monetization
2. Monetization
3. Asset dissolution
4. All of the above 

Ans. b

Explanation: In a monetisation transaction, the government transfers the revenue rights to private companies for a specific period in return for upfront money, a revenue share, and commitment of investments in the assets. 

8. What does the list of assets in NMP include?

1. 26700 km roads
2. Railway stations
3. Train tracks 
4. All of the above 

Ans. d

Explanation: The assets on the NMP list include: 26,700 km of roads, railway stations, train operations and tracks.

9. Which of the following can be counted as a challenge to NMP?

1. Lack of identifiable revenues streams in various assets
2. Level of capacity utilisation in gas and petroleum pipeline networks
3. Both a and b
4. None of the above 

Ans. c

Explanation: Some key challenges for NMP can be lack of identifiable revenues streams in various assets, level of capacity utilisation in gas and petroleum pipeline networks, dispute resolution mechanism etc

10. What is the land that is underutilized as a result of economic obsolescence called?

1. Brownfield
2. Greenfield
3. Greyfield
4. None of the above 

Ans. c

Explanation: A Greyfield is land that is underutilized as a result of economic obsolescence.

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